tv Sportfolio Bloomberg December 15, 2013 9:00am-9:31am EST
>> silicon valley savvy to rebuild the downtown golden state warriors. now he is got his sights build ing an nba championship and building a basketball palace in san francisco. meanwhile, in los angeles, kobe bryant is back in the basketball court, but he has his eye and on a success in a large arena. >> i'm looking toward getting into the trenches and doing more. >> a new venture promises to get big. sports is part of the plan. big dreams, big names and big money. another big edition of "sportfolio" starts right now.
hello, i'm rick horrow and welcome to "sportfolio," bloomberg's weekly inside look at the business of sports. in july of 2010, hollywood producer peter guber and his partner bought the golden state warriors for $450 million. it was the highest price ever paid for an nba franchise. since then, they have gone from perennial losers to bona fide championship contenders. the franchise has recently been revalued at $800 million, nearly twice what they paid three years ago. did anyone see this coming? i asked him what he knew in 2010 that the rest of the world
didn't. >> it hadn't been properly developed. i don't know that we knew anything more than the average fan, i was a fan for 20 some odd years and i thought there was a tremendous opportunity if someone were to really pay attention. >> when you bought the franchise, concorde was ok, but now you have almost double the waiting list for season tickets. there is a championship mentality around your franchise. winning helps, but it can explain all of that. >> we have done something that you are doing any business if you're coming in and wanted to turn it around. you'd hire the best people. we spent six months trying to figure out who was good and who wasn't good. we gave everybody an opportunity and then six months into it started making changes. there was a lot of hard work and it is not about me and peter guber, it is about the people who are here in the great work that they're doing. >> do you spend time at your former company? >> no.
that was hard. three years ago even though i , was transitioning, had a lot of responsibilities. those have transitioned. by necessity i have had to spend a lot of time here and i am virtually 100% here. >> he is immersed in the nba now, but he first immersed his toe with the boston celtics. bay area guy, basketball fanatic. the celtics put you in a position to be a majority owner. -- minority owner. was that tough for you? you're are not a minority owner guy. was it tough at first? >> actually, that is not entirely true. i come from venture capital where you never control or own the business. we always own between 10 and 40%. i have been in that position before and that has helped me in this as well. to your point, if it's turned
>> david stern really did help me quite a bit by giving me advice. i got to know david stern and know the league. that really helped when an opportunity came up in my hometown in terms of acquiring a franchise. >> the hometown connection is critical to lacob. even when it is not comfortable. at years ago, he was bood the microphone honoring the basketball legend. in the middle. you tried to smile. how did you feel? >> i tried to smile but i wasn't smiling inside. it was personally a hard thing to do and to absorb at that moment. three years later, everywhere i walk around san francisco and oakland, people are really nice to meet. they always say, joe, so sorry you got booed that day. personally, i think living in the town where you own your franchise is really important because you get involved. you have to hear the boos if you're here.
you have to hear the cheers. you know what is working and what isn't. that is what is really important, to be local and impassioned. >> the warriors are building considerable goodwill through their play on the court read after making the playoffs last season for the second time in 20 years, they are again considered a top contender in the western conference. he will need to incorporate every ounce of civic capital. they plan to open a state-of- the-art arena with retail space and open public space. it will be on the san francisco waterfront. the plan faces hurdles and will require hundreds of millions in financing. the season vcc is the -- sees the opportunities beyond the obstacles. >> this will be something to be proud of. i don't know if you know this, but when the golden gate bridge was built in the 1930's, there were a lot of opposers to that. it was tricky. now it is considered an icon.
i hope people view this building and what we're doing there and all the advantages for the city in terms of seven acres of public space and a park and all the other things like the fire station as a great advantage for the city. >> the bottom line is, having done a lot of these over 30 years, it requires tenacity but it also requires stability to -- and ability to evolve and compromise. you've had the intellectual and emotional skills to get this done long-term. >> the point is that you have to work with everybody. you have to listen to people and everyone has a voice. owning a basketball team and owning a business like this requires a lot of skills that aren't required normal businesses heard we own this but we are really part and parcel of the community as well. we do have to listen and hopefully at the end of the day we get that arena situation to a point where the majority of people believe we have got it right. >> the success on the floor, is it as you had hoped? it is easy to say the
expectations are there, are you surprised at how the team is -- has come together and captured the hearts and minds of san francisco? what's am i surprised? that is a great question. we had a plan and that plan was to emphasize defense, rebounding, and size. we have stayed true to that plan. we turned it around. we drafted well, we made a few good trades and signings and we need to continue that heard we are not there yet. getting the playoffs in the second round, nice. we need to go further. the goal is to win a championship and we are very serious about that. >> the warriors released version 3.0 of the project in november after san francisco voters rejected a ballot measure to allow a high-rise condominium development along the waterfront. the team's latest plan scales down the height of the arena and expands the amount of public open space to 60% of the entire site. the design must be reviewed by
the san francisco port commission and other local agencies as the permit process goes forward. coming up, kobe bryant unveils a new design for his latest shoe and tells jon erlichman that these days he's wearing many different hats. >> then you have to wear the the the satin get the public backlash. >> "sportfolio" is coming right back. ♪
>> welcome back to "sportfolio." eight months after achilles surgery, the lakers' star kobe bryant is playing again. his two-year extension contract is worth over $40 million. -- $48 million. jon erlichman caught up with him last week at an event celebrating the release of the kobe nine, his latest sneaker. and while the player may have lost a step, kobe the businessman is clearly just hitting his stride. >> i am an executive for whole -- my own brand of products. i learned a great deal from nike. it is tough for athletes because you are asking to wear two hats that contradict each other.
from an athlete's perspective you have to be passionate about your sport and think team first and winning first, right? then you have to put on the business hat, and get the public backlash for being a business minded businessperson. for whatever reason, i think athletes have become reluctant to do business things and make business decisions because of that. i think that is something that needs to change. >> magic johnson's business path, is that something you see yourself going after your days on the court? >> i really enjoy building things. we differ a bit. i enjoy the process of starting a company and partnering with someone that is launching a company and adding creative in marketing and helping with the design of the product from the inception of the brand. more so than lending your name to an established brand.
i enjoy going into the trenches and growing something from the beginning to the end. >> and you are already thinking about the next kobe? >> kobe tens and kobe elevens. >> will there be more? >> i hope so. livemeans the brand will beyond my playing days. >> the nike partnership and the lakers partnership are both important to you or it was important to you to get the contracts signed before he got back on the court? >> i guess from an individual perspective, yes, because obviously whenever you have an opportunity to have security and have things locked up you'd rather have that. from the way i was viewing it, i wanted to do what was best for the lakers because i was extremely thankful for everything they had done for me throughout my career. i did not want to get in the way of the process. i was really just stepping back and saying whatever they wanted to have a conversation.
they were great and we went through a myriad of offers and they presented an offer that i accepted. >> what about next year? will you be chief recruiter for the lakers and making calls on the team's behalf? >> one of the things that is a pet peeve of mine is that i am concerned about what will happen to the lakers organization when i step away from the game. i don't want them to have any dip whatsoever. i want them to continue to win championships and do what they do. i absolutely will. >> michael jordan recently made headlines saying that he could put together a team of five guys to have some fun on the court. here's who i would pick and if i ask you the same question? >> i'm liable to pick the same team. that is not a bad group. let's see if i could name some. i can name the same players he named? >> you can do whatever you want.
>> i would do magic, myself, bill russell, kareem abdul- jabbar and larry bird. you told my colleague, ownership is not something that interests you. >> i might reconsider not that -- now considering new collective bargaining rules. i might consider owning a new team. it makes sense to own a team. >> what about other sports like soccer or something like that? >> i will look into it. obviously another sport is something i'm passionate about. to be around sports and any type of fashion, never say never. >> kobe bryant identifies passion as a factor that can lead him to the owner's suite once his playing career is done. coming up, a movie channel is betting the passion of sports fans will help it build its business. ceo mark greenberg tells us why
>> here's the answer to the stumper. the los angeles lakers. while he did pass away this year, his family continues to own and operate the franchise. we have heard it over and over and over again on sportfolio that sports properties are among the most valuable assets in media and the market for sports programming, especially live event programming is hotter than ever. does that premise extend beyond traditional sports networks? can premium entertainment channels leverage the sports boom? epics is giving it a shot. they're putting resources and promotion behind sports programs and the president and ceo of epix joins us.
you have a library of over 15,000 movies, plus concerts, and comedy specials. how do sports fit into your model? >> sports has been a component of epix from the beginning. my personal history comes from putting on boxing events. i dealt with mike tyson as well as felix trinidad. we did live sporting events that were part of the network. we did live sporting events that were mainstay for the network the first few years. we evolved that to really more storytelling on the world of sports. for us, a big part of that was to reach a younger audience. a very engaged and very involved audience. for us as a network, we think we can take on stories others can't and really bring them to live in a very interesting way and a unique way. >> there's nothing more of a reality show than dealing with mike tyson. as you said, you did the mixed martial arts and boxing, but the
focus on documentaries as well now. give us the investment and revenue perspective on that change. >> for us as a premium network much like hbo, we are not selling a cpm per show because we are a subscription service. that allows us to take on issues that are more controversial and complex. we are not worried about advertisers. we are looking to the end-user and subscriber as a way for them to look at what our content is. for us, we are making a significant investment in our series of -- bill roden is doing a series called personal. our first one was with oscar de la hoya. a half-hour show. we have been the same thing with another franchise called in the moment. we have taken lindsay vaughn, mare stoudemire and we have a production on dwight howard.
those investments and content are really a major part of reaching that younger audience. epix today is reached on over 400 devices like the gs four, ps3, ps4, that younger audience really wants to engage. shows asorts and those a way to reach the younger audience, we know that sports is a passion. we really want to be able to activate that passion group. for the younger audience, we know sports is a passion. we want to be able to activate that passion group. >> you launched in 2009. talk about the second five years and what would you like to be doing as a sports part of your network grows. >> we continue to look at life sports and constantly look and entertain what might happen in the boxing or mma world if we see a good opportunity. i think we feel really good about expanding our sports telling franchise.
our first hard-hitting doc was schools and the price of college sports which deals with the ncaa on football and basketball and are these kids really being appropriately rewarded? we are able to take on an issue like that whereas other networks have conflicts because they are doing business with the ncaa or with the leagues. we are really excited that ross greenberg who is an emmy award- winning producer and has run hbo sports for years has brought to us a great documentary called "the forgotten four." it is really the first time -- we all look at me julie bass -- major league baseball with jackie robinson breaking the color barrier in 1947. no one knows that the nfl broke the color barrier in 1946. the los angeles rams and the cleveland browns. we will continue that franchise.
storytelling that we thinks help provide insight and understanding. we will continue the in the moment franchise which we have done with lindsay vaughn and which are what i call inspirational stories. we will expand that. we are doing three a year and will try to ramp up in the next few years. we think those franchises will really have a lot of value for us over the next few years. we will continue to expand that because we know that this audience, whether it is live or on-demand, which is where this world is going, it will be a great way to take those stories and bring them to life. >> storytelling involves a lot of passion. you absolutely have it heard mark greenberg, best of luck here thanks for joining us on "sportfolio." still plenty left on sportfolio. did you notice that it snowed up and down the east coast last sunday? could this be a preview of the
for three masters of managing. they are heading to the baseball hall of fame. the expansion era committee selected bobby cox, tony larussa and joe torre for enshrinement this summer. apparently, managing in the steroid era did not tarnish their candidacy. last sunday, a winter storm dumped several inches of snow along the eastern seaboard. it affected nfl playing conditions in baltimore, washington, and philadelphia. with a first outer cold-weather -- outdoor cold-weather super bowl about to be held in the new york area, and concerns over possible snow snafus remains high. bloomberg's stephanie ruhle sat down with al kelly, head of the new york and new jersey host committee to discuss the business impact of unpredictable elements. >> the farmer's almanac has told us to expect snow that week. what is the contingency plan if we get a snowstorm? outside iner played
a state this cold. >> >> i was certainly not predicting that we would do anything but be prepared. there are so many great things about this area and one of them is that we know how to clear snow. i spent time this afternoon with folks from the department of transportation in new jersey. we can bring thousands of allows move theo bear to snow. it would really take a very bad storm at exactly the wrong time to be an issue. i think there are two very wrong times during the course of the week. one is what affects economics of the week which as we get a bad storm on thursday and friday and it prevents people from getting into the airports because they're closed or slowed down. if people cannot get to town, they are not spending money. that is a big part of why we want this game. obviously the other bad thing is to get a bad snowstorm at the wrong time that prevents the kick off at 6:30 on sunday evening. >> you mention the economics of bringing it to new jersey. what about the economics if you have to bring a thousand plows
on? that costs a lot of money for the state of new jersey. >> the state will have to clear the roads no matter what the weather is. that is super bowl or no super bowl. the state has been very supportive as is the city of new york and making sure whatever public services we need are provided at a first-class rate. there is no differentiation as to what happens on a saturday or sunday on that weekend or during the week. i think our government has our back on this because they realize it is important that people can move around the region and move around freely and safely and comfortably. that way they will go out and go to restaurants and bars and entertainment venues and still spend money. >> for what it is worth, only one half inch of light snow fell last weekend at the meadowlands. all agree it is impossible to agree on what will happen on the -- to predict what might happen the weekend of february 2.
>> this week on "political capital" -- harry reid and chris van hollen talk about the budget deal and 2014. and also the volcker rule. and talking about paul ryan's future. we begin the show with the senate majority leader harry reid. thank you for being with us. you had an agreement on friday so you do not need another all- night session. does this mark the end of this war that has transpired?